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Rate of return or target pricing method
Under this method of price determination first of all a rate of return desired by the enterprises on the amount of profit capital invested by it is determined. The amount of profit desired by the enterprises is calculated on the basis of the rate of return. This rate of return amount of profit is added to the cost of production of the product and thus the price per unit of the product is determined. This method of price determination can be used by an enterprise to get a certain return on invested capital. The use of this method is possible only when there is no competition in the market.
Cash discount is given to buyers to bring them to make prompt payment. The credit terms identify the percentage discount and the period throughout which it is obtainable. Liberal c
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Describe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Company
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